Slackmac>I wouldn't get too concerned about the BYE delivery...

Slackmac>I wouldn't get too concerned about the BYE delivery system, it is via 'schedule' pipe (which has a substantial wall-thickness to accommodate extreme pressure and temperature regimes) as opposed to the user-end low pressure 'tube' (thin-walled); which in Texas would probably be completely unlagged.

Thanks for that Slackmac. This makes sense. A pipe in the sea is going to have to be rugged by it's very nature. A pipe on land does not. My understanding is that the problem with the cold is that when you go from a high pressure system to a domestic pressure system the pressure drops and this cools the regulator. Not a problem for sunny Texas. But now it is. The northern competition has to be dead in the water.

Because it is unusually cold in Texas many people will be switching on an electric heater. Hense the spike in electricity prices. The average price for electricity in Texas in the winter is about 12 cents per kilowatt-hour, according to the U.S. Energy Information Administration. Texas utility regulators allowed that price to rise to $9 per kilowatt-hour.7 hours ago. (source google)

If I was selling electricity from a power station at $9 instead of the usual 12c (ie a 75 doubling) on the wholesale market. I would not care what the price of gas was until it hit $3 (usual price) * 75 = $255. So $25 is low ball.

Someone is making a lot of money, and it is not me. Personally, If I was bye I would be phoning up my buyers and advising them that I will be shutting down the gas pipe line to do inspections to ensure integrity due to the unusual cold weather. After all $3 is a god dam joke and since that is the usual price I have no reason to bust a gut and take risks. Also I would be getting my black book out and phoning all my competitors in the gulf to see what their thoughts were and whether they also needed to do offline inspections.

We are paying 15% on our debt right now. A reasonable cash injection now could mean the difference between BYE going under and BYE finding the next big one in the gulf. It seems like we are due some love (finally). I want my love in $.